Ghana’s Parliament has passed the Bank of Ghana (Amendment) Bill, 2025, in a landmark move to strengthen the central bank’s autonomy and reinforce fiscal discipline. The amendments prohibit the Bank of Ghana from purchasing government securities in the primary market and redefine emergency lending provisions to strictly limited circumstances, such as natural disasters or public health crises. The legislation responds to widespread criticism that extensive central bank financing of the government during and after the COVID-19 pandemic undermined monetary stability and contributed to inflationary pressures.
Under the revised law, all direct or indirect advances from the central bank to government entities outside narrowly defined emergency contexts are banned. Loans under emergency scenarios must now have clear repayment terms, capped limits, and require parliamentary approval before execution. Strengthened governance mechanisms also include stricter eligibility criteria for the Bank of Ghana’s board members and expanded audit oversight functions.
Finance Minister Cassiel Ato Forson asserted that the reforms align with Ghana’s broader macroeconomic stabilization agenda and the IMF programme designed to curb inflation and rebuild investor confidence. By buttressing policy credibility and central bank autonomy, policymakers hope to sustain the recent downward inflation trajectory and support long-term growth. Economists note that monetary independence is a core pillar of economic resilience, especially as Ghana navigates recovery from the recent economic downturn.
The amendments are expected to have far-reaching implications for fiscal-monetary coordination, investor trust, and the central bank’s operations as Ghana prepares for sustained economic expansion into 2026.
